2.13 Provisions
Provisions are recognized when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. When the Company expects some or
all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement
is recognized as a separate asset, but only
when the reimbursement is virtually certain.
The expense relating to a provision is presented
in the Statement of Profit and Loss net of any
reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognized as a finance cost.
2.14 Retirement and other employee benefits
Short-term obligations
Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the
period in which the employees render the related
service are recognized in respect of employees’
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.
Other long-term employee benefit obligations
The liabilities for earned leave and sick leave
are not expected to be settled wholly within 12
months after the end of the period in which the
employees render the related service. They are
therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method. The benefits are discounted using
the market yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation.
The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.
Post-employment obligations
The Company operates the following post¬
employment scheme:
(a) defined benefit plans such as gratuity; and
(b) defined contribution plans such as provident
funds.
Bonus plans
The Company recognizes liability and an expense
for bonuses. The Company recognizes a provision
where contractually obliged or where there is
a past practice that has created a constructive
obligation.
2.15 Investments in subsidiaries
In respect of equity investments, the entity
prepares separate financial statements and
account for its investments in subsidiary at cost,
net of impairment if any.
2.16 Cash and cash equivalents
Cash and cash equivalents in the balance
sheet comprise cash at banks and on hand and
short-term deposits with an original maturity
of three months or less, which are subject to an
insignificant risk of changes in value.
For the purpose of the statement of cash flow,
cash and cash equivalents consist of cash
and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are
considered an integral part of the Group’s cash
management.
2.17 Trade receivables
Trade receivables are recognized initially at fair
value and subsequently measured at amortized
cost using the effective interest method, less
provision for impairment.
2.18 Trade and other payables
These amounts represent liabilities for goods and
services provided to the Company prior to the
end of the financial year which are unpaid. The
amounts are unsecured and are usually paid within
30 days of recognition. Trade and other payables
are presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognized initially at their fair
value and subsequently measured at amortized
cost using the effective interest method.
2.19 Contributed equity
Equity shares are classified as equity.
2.20 Earnings per share
Basic earnings per share
Basic earnings per share are calculated by
dividing:
• the profit attributable to owners of the
Company
• by the weighted average number of equity
share outstanding during the financial year,
adjusted for bonus elements in equity shares
issued during the year and excluding treasury
shares.
2.21 Contingent Liabilities
In the opinion of the Board of Directors, adequate
provisions have been made in the accounts for
all known liabilities. The value of current assets,
loans and advances have a value on realization in
the ordinary course of business at least equal to
the amount at which they are stated in the balance
sheet, unless otherwise stated.
The Company does have any pending litigation
which would impact on its financial position.
While the Company generally does not have any
pending litigation that would materially impact
its financial position, there is one specific matter
currently under litigation:
A pending litigation with The Superintendent
(Range-V), Central Goods and Services Tax
Division - Dehradun, is currently before the
Nainital High Court. This litigation pertains to an
alleged excess input tax credit (ITC) amounting to
Rs. 1,18,34,538/- availed in GSTR-3B compared
to GSTR-9 and GSTR-2A during the Financial
Year 2017-18. The Company asserts that this
discrepancy arose due to a clerical error where
Input credit of Rs. 1,18,34,538/- (comprising IGST
Rs. 1,15,77,552/-, CGST Rs. 1,28,493/-, and SGST
Rs. 1,28,493/-) was inadvertently filed under Table
No. 4A(4) instead of Table No. 4A(5) of Eligible ITC
in GSTR-3B for the month of March 2018.
The Board of Directors believes that this pending
litigation is unlikely to have a material adverse
impact on the Company’s financial position.
2.22 New standards and interpretations not yet
adopted
Ministry of Corporate Affairs ("MCA") notifies
new standard or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. On
March 23, 2022, MCA amended the Companies
(Indian Accounting Standards) Amendment Rules,
2022, applicable from April 01,2022, as below:
Ind AS 103 - Reference to Conceptual Framework
The amendments specify that to qualify for
recognition as part of applying the acquisition
method, the identifiable assets acquired, and
liabilities assumed must meet the definitions
of assets and liabilities in the Conceptual
Framework for Financial Reporting under Indian
Accounting Standards (Conceptual Framework)
issued by the Institute of Chartered Accountants
of India at the acquisition date. These changes
do not significantly change the requirements of
Ind AS 103. The Company does not expect the
amendment to have any significant impact in its
financial statements.
Ind AS 16 - Proceeds before intended use
The amendments mainly prohibit an entity from
deducting from the cost of property, plant and
equipment amounts received from selling items
produced while the Company is preparing the
asset for its intended use. Instead, an entity will
recognize such sales proceeds and related cost in
profit or loss. The Company does not expect the
amendments to have any impact in its recognition
of its property, plant and equipment in its financial
statements.
Ind AS 37 - Onerous Contracts - Costs of
Fulfilling a Contract
The amendments specify that the "cost of
fulfilling" a contract comprises the "costs that
relate directly to the contract". Costs that relate
directly to a contract can either be incremental
costs of fulfilling that contract (examples would be
direct labour, materials) or an allocation of other
costs that relate directly to fulfilling contracts. The
amendment is essentially a clarification, and the
Company does not expect the amendment to have
any significant impact in its financial statements.
I nd AS 109 - Annual Improvements to Ind AS
(2021)
The amendment clarifies which fees an entity
includes when it applies the "10 percent" test of
Ind AS 109 in assessing whether to derecognize
a financial liability. The Company does not expect
the amendment to have any significant impact on
its financial statements.
I nd AS 116 - Annual Improvements to Ind AS
(2021)
The amendments remove the illustration of the
reimbursement of leasehold improvements by the
lessor in order to resolve any potential confusion
regarding the treatment of lease incentives that
might arise because of how lease incentives were
described in that illustration. The Company does
not expect the amendment to have any significant
impact on its financial statements.
2.23 Research and Development Expenditure
1. Capital Expenditure is included in Fixed
Assets and Capital Work in Progress and
depreciation is provided at the respective
applicable rates.
2.24 API Plant at Dahej-II (Dahej Unit-I)
The United States Food and Drug Administration
(US FDA) approved the API Facility of Shivalik
Rasayan Limited at D-2/CH/41/A, GIDC Industrial
Estate, Dahej, Bharuch, Gujarat, India-392140
based on inspection concluded on April 09, 2024 at
05:30 PM and released Establishment Inspection
Report (EIR) and final approval has been received
on Oct 2024.
2.25 Agro Chemical Plant at Dahej-III (Dahej Unit-II)
The commercial production of Agro Plant at Dahej
has started during the financial year. The quality of
the products is well accepted by their customers.
2.30 Managerial Remuneration
During the year, the Company has paid total managerial remuneration amounting to Rs.336.22 Lakhs (Previous year
Rs.230.34 Lakhs) which is approved under Section 197 read with schedule-V of the Companies Act, 2013.
2.31 Suppliers Status of registration under the Micro, Small & Medium Enterprises:
The Company is regular in making payments as per terms except for special reasons for the Micro, Small and Medium
Enterprises.
2.32 The Previous Year Figures have been reworked, regrouped, rearranged, reclassified and / or re-casted wherever
deemed necessary to make them comparable with those of the current year’s figures.
1.33 Corporate Social Responsibilities:
During the year the Company incurred Rs.30.06 Lakhs under CSR activities, as prescribed u/s 135 of the Companies
Act, 2013 (Rs.32.61 Lakhs for previous year).
As per our attached report of even Date
for Rahul Chaudhary & Associates for & on behalf of the Board of Directors
Chartered Accountants Shivalik Rasayan Limited
CA Rahul Chaudhary Parul Choudhary Vinod Kumar Ashwani Kumar Sharma Rahul Bishnoi
Partner Company Secretary Chief Financial Officer Director Chairman
M.No. 542837 ACS:34854 PAN: AQPPK5268F DIN: 00325634 DIN: 00317960
FRN: 033971N
Place: New Delhi
Date: May 30, 2025
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